Sema Construction v. City of Tustin CA4/3

FACTS AND PROCEDURAL BACKGROUND

1. Background SEMA was the successful bidder on a $23.8 million contract to build roads on property within an area previously used by the United States Marine Corp. as a helicopter base. The area is referred to as the Tustin Legacy project. The work included “construction of sanitary sewers, storm drains, reclaimed water lines, [and] domestic water lines.” Irvine Ranch Water District (IRWD) was the entity that would take over operation of the completed pipelines and it entered into a contract with Tustin to reimburse it for certain construction related expenses. The contract consisted of six lettered sections and two appendices. Sections A and B covered Tustin’s notice to contractors of the project, plus blank contractor bid forms. Section C was the contract agreement containing SEMA’s successful bids for each item of work to be performed, its performance and labor and material bonds, and insurance certificate. Section D contained the contract’s general provisions. Sections E and EH covered special contract terms. The latter part, section EH, dealt with construction work in a portion of the project known to have soil contamination and described as…